Comments
Our Bureau
The Bombay High Court hearing on the write-off of YES Bank’s alternative tier-I (AT-I) bonds has been postponed on an appeal by bondholders as the RBI has agreed to reconsider its decision.
The bond holders have proposed to convert a portion of the ₹8,900-crore AT-I bonds into equity.
Nippon India Mutual Fund and Axis Debenture Trustee had filed a petition on Monday in the High Court against the RBI decision to write down AT-I bond as part of the draft reconstruction plan for YES Bank. Nippon India has an investment of ₹1,800 crore through six of its schemes.
Coupon payments
The RBI is expected to consider a proposal to allot equity shares to bondholder after they take an haircut of 80 per cent on bond value, according to sources.
Earlier, Axis Trusteede, the debenture trustees for YES Bank’s AT-1 bond, had also suggested that the central bank suspend coupon payments and delay the exercise of call option till the financials of the bank improve.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.